Here we go again… Rate Increases and Premium Services

Welcome to our latest Market Watch update, where we delve into the latest developments impacting global logistics. The ongoing Red Sea conflict strains capacity and schedule reliability on the Asia to North America route, with potential strikes in Canada and the East Coast of North America looming. Meanwhile, India’s new services to North America are softening rates. The Panama Canal saw increased transits in April, though numbers remain below last year. Additionally, the Asia to Europe market faces rate hikes due to container space shortages. Air freight remains robust, fueled by ecommerce growth.

Asia to North America

Red Sea conflict continues to impact capacity and schedule reliability. Reports of space tightening and equipment shortages at origin ports. Potential for strikes in Canada and on the East Coast may cause further increases in June. Premium options are back for more reliable transit times. More blank sailings slated for June with potential for another GRI in June.

Panama Canal Update

Oceangoing transits in April totaled 789 vessels, 42 higher than March, but 289 below the April 2023 number, according to the Panama Canal Authority’s latest data.

India to North America

Plenty of capacity as new services are introduced and rates continue to soften.

Asia to Europe

Multiple sources noted that the availability of container space on vessels traveling from Far East Asia to North Europe was constricted for weeks to come, with some carriers releasing premium container rates on the market to ensure they capitalize on any leftover container ship allocation. The Red Sea crisis along with restocking is causing rate increases.

Asia to North America

Ecommerce continues to support year on year volume growth across both markets Asia to Europe & North America.

Last hurrah for de minimis imports to US consumers before a wave of legislation
Online merchants selling to US customers, as well as their customs brokers, got an unexpected reprieve last month from the US Customs & Border Protection agency (CBP), which postponed a mandate for advance submission of shipment data.
– Read More

ILA, local ports wrapping up contracts, setting up coastwide talks
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) said Monday that local negotiations over a new contract covering port workers up and down the US East and Gulf coasts are close to completion.
– Read More

Strike threat to Canada’s rail network rises as negotiations stall
Canadian rail operators are racing to cement a deal with labor unions before a “damaging” strike can take place, but early indications are that negotiations have started to derail.
– Read More

East and Gulf Coast port labor negotiations to start soon
Both sides aim to land a new contract before the current deal expires Sept. 30, but strike concerns have shippers mulling mitigation plans.
– Read More

Panama Canal crossings resume, but some time before full normalisation
All of the liner services that were affected by the limits on Panama Canal transits have returned to their regular operation, as of this month.
– Read More

Mounting container shortages creating ‘total havoc’
Containers out of northern China are becoming increasingly hard to get hold of, report forwarders. A surprisingly strong market, plus lower vessel capacity due to the Red Sea crisis, is creating a shortage of both ships and containers.
– Read More

Ocean carrier cocktail leaving a sour taste in shippers’ mouths
The ocean carrier cocktail is back and it packs a punch. Two parts canceled sailings that spice up spot rates, coupled with a stiff pour of general rate increases, leaves shippers with a dull headache and a thinner wallet.
– Read More

Houthis threaten to target Israel-bound ships in the Mediterranean
Iran-backed rebels, who have launched scores of drone and missile attacks on shipping since November, say the escalation will take effect ‘immediately’.
– Read More

Maersk says Red Sea disruption could cut Asia-Europe capacity by 20%
Disruption to Red Sea container shipping is rising, Maersk said on Monday, forecasting this will cut the industry’s capacity between Asia and Europe by up to 20% in the second quarter.
– Read More

Strong consumer spending drives another import upgrade from US retailers
Retailers have yet again upgraded their forecast for imports landing on US docks this year, saying Wednesday they expect monthly volumes consistently above 2 million TEUs well into the 2024 peak shipping season.
– Read More

Panama Canal Oceangoing Transits Rise in April as Water Conditions Improve
Oceangoing transits at the Panama Canal rose to the highest level in seven months as water conditions at the global waterway have improved.
– Read More

Temu shifts focus from US – but air cargo still bullish on ecommerce
The net is tightening around China’s ecommerce platforms – the current drivers of air cargo. But despite signs of change, carriers remain committed to those volumes, and the expected Q4 peak.
– Read More

Questions? All you have to do is contact us.

#makingtheworldsmaller